1. We Accelerate Growth1BBuussiinneessss IImmppaacctt iinn AAffrriiccaaMega Trends driving mega opportunities in Sub SaharanAfricaMani James, Regional DirectorFrost & Sullivan Africa

2. New Mega TrendsMacro to Micro Opportunities onFuture Business, Cultures andPersonal Lives 3. Agenda Introduction and Definition of Mega Trends Presentation of Top Mega Trends of the Future A snapshot in Africa Urbanisation Focus on Mega Cities Infrastructure development & Water Mobile Africa Connecting the Unconnected & E - Learning Africa (Collabo)rising New Business Models & Made in Africa Health and Well being Healthcare services and Digital medicine Energy Regional Integration and Renewable power Adding Higher Local Value Food Responsible Revolution Financial Services Emerging markets in Africa Key Success Factors for Market Entry Strategic Conclusions 4. Definition of a Mega TrendWhat is a Mega Trend? Impact of Mega Trends on KeyOrganisational FunctionsMega Trends are global, sustainedand macro economic forces ofdevelopment that impact business,economy, society, cultures andpersonal lives thereby defining ourfuture world and its increasing paceof change 5. Frost & Sullivan covers the following MegaTrends - GlobalTop Mega Trends That We Track Under our Mega Trends ProgramUrbanization City as aCustomerSmart is the NewGreenSocial Trends: Gen Y,Middle Bulge, She-conomy,GeosocializationConnectivity andConvergenceBricks and ClicksInnovating toZeroNew BusinessModels: Valuefor ManyEconomy:Beyond BRIC: TheNext GameChangersFutureInfrastructureDevelopmentHealth, Wellnessand Well BeingFuture ofMobility 6. Energy:$800 billionElectricity infrastructure,renewable energy,rehabilitation of existingstructuresAgriculture: US$50 billionIncludes fertilizers, crop protection, animalhealth, feed and additive products, andplant biotechnology.Manufacturing:$204 billionManufacturing, food packagingOil & Gas: US$3.6 trillionInfrastructure, extractionchemicals, and rehabilitationWater: US$700 billionIncludes sanitation,water infrastructureand chemicals,renewable water,and water andwastewatertreatment.and fortification.InfrastructureDevelopment: >US$400billionTransport infrastructure andrehabilitation, housing, ICT, building andother materials, construction and PPE 7. Urbanisation in-Africa 8. MegaCitiesMegaRegionsMegaSlumsMegaCorridor 9. Cities, and Not Countries,Will Drive Wealth Creation In theFutureGauteng will account for roughly 40% ofSouth Africas GDP by 2020In 2014, Lagos contributed about 25% to theNigerian GDPWhat are the Micro Implications?New Products and SolutionsHigh Economic PowerHub and Spoke Business ModelTransit oriented developmentNew Mobility SolutionsCity as a Customer 10. Urbanisation in Africa16.3 Million PeopleLagos+EkoAtlantic CityLuanda & Dar Es Salaam 2020, Luanda is expected to grow from4.7 million in 2010 to over 8 million by2025 forming a mega-cityof high population density andcommercial activityLagos and Eko Atlantic City RegionLagoss Eko Atlantic City will merge with thecity of Lagos to form a future businessgateway to Africa amega-region of over 16 millionAbidjan Accra Lagos & North South Corridors Transport routes across the region will beexpanded and integrated to create corridors fortrade and inter--continental co-operation bylinking mega-citiesCairoLuandaCape TownOuagadougouAbidjanAccra 11. Africa Population Forecast RegionwiseUrban Population Forecast by Region, Africa, 19952025Source: UN Department of Economic & Social Affairs and Frost & Sullivan analysis. 12. Mega Cities will increase by 25% by 2025; at an average growthrate of 3.4%, 1.2 billion people, 60% of Africas population, will beurbanised by 2050Growth of African Cities% increase, 2010- 2025 forecast5.6 millionData Source: Africa Progress Report, 2010AlgiersDar es SalaamAlexandriaNairobiCasablancaAccraAbidjanAddis AbabaDakarIbadanDoualaCape TownDurban3.6 million4.1 million4.3 million3.2 million3.1 million4.7 million6.2 million6.2 million3.8 million3.2 million6.3million3.5 millionLuanda8 millionMigration Urban Mega City population, 2025 Population, 2025 13. Snapshot of Sustainable/Eco Cities in 2025- AfricaSustainable/Eco City in 2025Sustainable/Eco City builtfrom scratchAccraJohannesburgCape TownDurbanTunisMasdar CityDohaBelo HorizonteBogotBrasliaRio de JaneiroSo PauloCuritibaMexico CityPortlandSacramentoOaklandSan DiegoDallasHoustonOrlandoAustinMinneapolisSan JoseDenverBostonOttawaMontrealPhiladelphiaWashington DCColumbusEdmontonCardiffBrusselsZurichLyonFrankfurtMilanRomeCambridgeshireMarseilleTampereNote: Eco Cities are cities built on a green initiative, from buildings to transportation, governance, cityplanning, energy, and technology. These cities are either upgraded or built from scratch.GenevaGrazRigaVilniusMetzTubingenMontpellierBordeauxCasablancaNorwichHamburgManchesterGothenburgIsle of WightGlasgowLiverpoolDublinMarseilleBergenEdinburghNantesNorth America GyorLatin AmericaEuropeMiddle Eastand AfricaAsia-Pacific & AustraliaIstanbulBursaAnkaraEskisehirIzmirDenizliAntalyaAdanaEdinburghGujarat International Finance Tec City (GIFT)Sino-Singapore Tianjin Eco-city, TianjinNanjingHong KongFoshanGuangzhouWuxiOsakaYokohamaWanzhuang Eco-city, HebeiMedanPalembangJakartaSurabayaDenpasarMakasarBalikpapanAdelaideMoreland 14. Mega Regions in AfricaMega Regions in 2025Potential MegaRegions in 2030Source: United Nations, Department of Economic and Social Affairs, Population Division (2012); WorldUrbanization Prospects: The 2011 Revision; and Frost & Sullivan analysis.Lagos and Eko Atlantic City RegionPopulation 2025: 25 MCairo-GizaPopulation 2025: 17.6 MJohannesburg & PretoriaRegionJohannesburg, Sandton,Randburg, Midrand,Centurion, and PretoriaPopulation 2025: 7.6 MMega Regions, Africa, 2025 15. Mega Corridors in AfricaThe North Delta RegionCombined population of 77 million3 emerging corridors: Cairo-Suez;Cairo-Alexandria; Cairo-IsmailiaAddis Ababa900 km Kampala-Nairobi-Mombasa Urban CorridorNairobiSource: UN-Habitat, 2010 and Frost & Sullivan analysis.1,000 km Abidjan-Ouagadougou CorridorAbidjanOuagadougouKinshasaCape Town Johannesburg/PretoriaDar es SalaamAccraIbadanLagosLuandaAlexandria CairoThe Greater Ibadan Lagos Accra(GILA) CorridorCombined population greater than18 millionContributes combined GDP of about$127.6 millionTrans-Cunene CorridorWill link the Democratic Republic ofCongo (DRC) with South Africathrough Angola and NamibiaTransportationCorridorsPopulation less than 25 million peopleNorth-South CorridorFacilitate inter-regional tradefrom Cape to CairoFree trade area comprising533.0 million peopleCombined GDP of $833.00billion or 58% of Africas GDPTransportation Corridors, Africa, 2025 16. Mega Slums in AfricaSplintered UrbanizationAfrican urban communities will becomprised of 70% informalsettlement dwellers living alongsidean emerging middle class, similar tocondition in India.Percent of Urban Residents by Type ofSettlement, Africa, 2020Forecast of Major Slums, Africa, 2050Chad99.4% of countryspopulation lives in informalsettlementsEthiopia99.4% ofcountryspopulation livesin informalsettlementsSource: UN-Habitat and Frost & Sullivan analysis.Lagos, Nigeria75% of populationlives in informal settlementsLuanda, AngolaCacuaco to have600,000-plus peopleJohannesburg/PretoriaSowetoKinshasa, DemocraticRepublic of CongoNairobi, KenyaKibera to have 1million-pluspeopleMaputo, MozambiqueCape Town, South AfricaKhayelitsha 17. Infrastructure Development in Sub-Saharan Africa Overview ofDevelopment in Key Sectors< 0.50.5 1.01.0 5.05.0 10.00.0 15.0>15.0Transport$174 billionEnergy$139 billion Legend:Investment ($ billion) High value investments(>$1 billion) Focus on road, rail andport networks Historical reliance onthermal/hydropower Increased focus ondriving renewablesSource: Frost and Sullivan analysis*based on active projects in 2012Water$20 billionSocialTotal investment in $45 billionongoinginfrastructureprojects in Sub-Saharan Africa(excluding ICT & Secondary Focusfor GovtsTelecoms) amounts Could pose majortorisk in$378 billionmedium/long-term Driven byMilleniumDevelopmentGoals High reliance onDevelopment Aid 18. 18Mobile Africa - Connecting the Unconnected 19. Connecting the Unconnected Mobile ,Broadband and Internet penetrationAsiaEuropeNorth AmericaLatin America140%123%AfricaOceania90%41%120%91%110%56%112%75%82%27%4%90%56%85%7%65%11%83%57%Mobile Penetration 2009Source: 2009 telecommunications statistics from ITU;2020 projections from Frost & Sullivan analysis.110%90%100%68%50%9%100%82%100%70%8%60%21%95%70%Mobile, Broadband, and Internet Penetration per Region, Global, 2009 and 2020Mobile Penetration 2020Broadband Penetration 2009Broadband Penetration 2020Internet Penetration 2009Internet Penetration 2020Currently, 77% of the Worlds Population Holds a Mobile Subscription 20. Annual Growth Rates of 9% to 2020 will AllowAfrica to Reach a Mobile Penetration Rate Close toMarket SaturationMobile Telephone Penetration Rates: 2010 Mobile Telephone Penetration Rates: 202080-100%60-80%40-60%20-40%15%10-15%5-10%